The Merian Chrysalis Investment Company - the first trust launch from Richard Buxton's Merian Global Investors - has announced it will cap certain charges as it embarks upon its first day of dealing.
In a statement, the board said the the investment manager has agreed to cap the investment company's ongoing charge expense ratio at 0.85% for the next 12 months or until the NAV reaches £200m, whichever occurs earlier, to "provide certainty to investors"
This fee structure will be subject to review at the end of the 12 month period.
The board previously indicated the trust will have an ongoing management fee of 0.5% per annum of its net asset value (with no fee on uninvested cash until 90% of IPO proceeds are deployed).
There will also be a performance fee of 20% of returns in excess of 8% per annum, compounding hurdle with a high watermark, which has not been amended.
Dealing will begin at 8am today with 100,000,000 ordinary shares being admitted to the premium segment of the London Stock Exchange's Main Market for listed securities.
The Merian Chrysalis Investment Company raised £100m in its initial placing, half the amount it had previously targeted, as announced in a statement to the stock exchange on 2 November.
The group, which rebranded from Old Mutual Global Investors following its split from Old Mutual Wealth, said on 10 September it was targeting a fundraising of £200m with the trust investing primarily in unquoted companies.
Richard Watts, co-fund manager alongside Nick Williamson, said in this morning's statement: "We are delighted to be launching the Merian Chrysalis Investment Company, which will offer investors exposure to a portfolio of exciting, later-stage private growth companies, a market that investors, typically, have had limited opportunities to access. Despite challenging market conditions - following the global sell-off in October, and investors adopting a cautious outlook - we are pleased to have raised £100m at launch.
"There is significant interest in the asset class and our strategy and we have identified a strong pipeline of high-growth private investment opportunities."
Merian Chrysalis Investment Company aims to generate long-term capital growth through investing in a portfolio consisting primarily of equity or equity related investments in unquoted companies.
It will look to invest in attractively valued minority, private investments with long-term growth rates substantially better than the average UK company. Once fully invested, the trust is expected to have between seven and 15 investments, with net proceeds from the IPO expected to be substantially deployed within six to nine months of first admission.
The sale of the OMGI to TA Associates and senior OMGI management was announced by Quilter, formerly Old Mutual Wealth, last year and completed at the end of June.
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